Banks Face a Tsunami of Transition Plans

Without a way to harmonise the content of transition plans, such as those GFANZ outlines as current standard practice, banks are likely to ignore most of what their customers are doing, which erodes the effectiveness of their own Net Zero finance strategies.

With a proliferation of Net Zero pledges, financial institutions are grappling with how they will evaluate the plans they receive from customers without adding substantial time and cost to the processGFANZ guidance on financial institution reviews of customer transition plans will help lay the groundwork for greater harmonisation – at least of format if not content – of transition plansThe process of routinising submission and review of transition plans to receive financing will help make the...